In the seventh chapter of Bhagavad-gita [7.6],
Lord Krishna says that all created beings have their origin in two
natures: the material and the spiritual;
and that He is the source of both natures [Bg. 7.6].

Prakriti, material nature, is actually threefold.
Nature consists of a superior energy [para], an inferior energy [apara], and a
marginal energy. The superior energy manifests the
spiritual realm. The inferior energy [known as "nature" by scientists]
manifests this material world. And the marginal energy, also spiritual by constitution,
comprises the infinitesimal sparks of consciousness known as jivas; that is, all
living beings. When the jivas choose to associate with matter and identify with
the inferior energy, they manipulate it for sense enjoyment and thus the entire
world functions.

Material nature consists of eight elements: earth,
water, fire, air, ether, mind, intelligence and false ego. These are known as
Krishna's "separated material energies" [Bg. 7.4].
Another classification of the elements of the material world includes the
five gross elements [earth, water, fire, air and ether], the
three subtle elements [mind, intelligence and false ego], the
ten senses [five for working: hands, legs, stomach, rectum and genitals;
and five for acquiring knowledge: eyes, ears, nose, tongue and skin], the
five sense objects [form, taste, smell, sound and touch], and consciousness.
These twenty-four elements constitute the field of activity for the living entities.

The material body of the jiva is also called the field of activity. It is a
miniature universe comprised of the twenty-four universal elements. Though covered
by gross and subtle material elements, the soul retains in a dormant state its
individuality as the eternal servitor of the Lord. The pure soul in the material
world desires to exploit material nature, and the false ego is the identification
of the self as separate from Krishna.

Material nature is endowed with the three qualities
or modes [gunas]: goodness, passion
and ignorance. When these three qualities combine and permutate, they create
many varieties of consciousness, just as the combinations of the primary colors
red, yellow and blue create many colors. Conditioned by the three modes, the living
entity adheres to a particular type of faith, prefers certain kinds of food, and
enjoys his own type of understanding, determination, happiness and knowledge.
Bhagavad-gita [4.13] says that one's tendency towards
a particular type of work is determined by the modes of material nature. Generally,
the mode of goodness conditions one to happiness; passion, to fruitive action;
and ignorance, to madness. All three modes bind one to the cycle of repeated births
and deaths. "This divine energy of Mine, consisting of the
three modes of material nature, is difficult to overcome," Krishna
says. "But those who have surrendered unto Me can easily cross beyond it"
[Bg. 7.14].

According to Bhagavad-gita, both the living entity as well as the material nature
are explained as prakriti, or the energy of the Lord. The difference is that one
of the two, the jiva-prakriti, is conscious whereas the other one, jada-prakriti
is unconscious and composed of inert matter. Therefore the jiva-prakriti is called
the superior energy of the Lord because the jiva, or living entity, has consciousness
which is similar to the Lord's. However, one should not wrongly conclude, that
the limited consciousness of living entities is equal to the all-pervading Supreme
consciousness of the Lord.
[see also: two types of consciousness]

Jada-prakriti or material nature, is the inferior energy of the Supreme Lord,
because it is composed of inert matter and analysed in Shankya to be of 24 material
elements. This inferior and superior energies is clearly mentioned in Bhagavad-gita
[7.4-5] "This inferior energy comprised of earth,
water, fire, air, ether, mind, intelligence and false ego--altogether these eight
elements comprise My separated material energies." "Besides this inferior
nature, there is a superior nature of Mine, which are all the living entities
who are struggling with material nature and are sustaining the universe."

It is clearly mentioned that living entities belong to the superior nature
(or energy) of the Supreme Lord. The inferior energy is matter manifested in different
gross and subtle elements, namely earth, water, fire, air, ether, mind, intelligence
and false ego. Both forms of material nature, namely gross (earth, etc.) and subtle
(mind, etc.), are products of the inferior energy. The living entities, however,
who are exploiting these inferior energies for different purposes, are the superior
energy of the Supreme Lord, and it is due to this energy that the entire material
world functions. The cosmic manifestation has no power to act unless it is moved
by the superior energy, the living entity. Therefore everything that takes place
in this material creation is due to the combination of the superior energy with
the inferior nature, or spirit and
matter.

Material nature is the separated energy of the Lord, and similarly the living
entities are also the energy of the Supreme Lord, but they are not separated.
They are eternally related to the Lord as his spiritual part and parcels.